TSP Adds 5,000 Mutual Fund Options

SKIATOOK, Okla., March 17, 2022 /PRNewswire/ -- Federal Employee Benefit Coordinators LLC is helping Federal employees navigate the upcoming changes to TSP plans! Navigating benefits as a federal employee can be difficult, the paperwork seems never-ending and the promise of a picture-perfect retirement at the end of the journey. FEBC's first-hand experience managing federal benefits and educating federal employees on their options sets them apart. Here is what Federal Employee Benefit Coordinators want you to know about the upcoming changes!

Are you ready for this? They have talked about it for a long time, but it seems it is really gonna happen, maybe as early as the fall of 2022. The current options are a bit complex, and now they are adding thousands of mutual fund options.

The mutual fund window will include issue-based investments, like environmental, social, and governance funds, which avoids major polluters like fossil fuels and diversely managed funds, two features that have always piqued the interest of activists and lawmakers.

Still to be determined is how the agency will collect fees to cover the administration of the new investment option. This will mean new fees for the TSP participants, but only for those who choose the new mutual fund options for investing.

Some of the proposed fees are a $95 annual maintenance fee, a per-trade fee of $28.75, fees imposed by the specific mutual fund that is chosen and will vary by fund, and an availability fee that is supposed to make sure the "availability of the mutual fund window will not indirectly increase the share of TSP administrative expenses borne by participants who choose not to use the mutual fund window."

The agency will be responsible to set limits on both how much and how little money participants can transfer between the core fund and the mutual fund window. Initial transfers of $10,000 will be required and a minimum TSP balance of $40,000 is necessary to be eligible to invest in this new mutual fund option. Another limit for TSP participants is that no more than 25% of their TSP balance can be used in the mutual funds.

Here is another big consideration for TSP participants: any transfer to or from these mutual funds would count toward the maximum of two interfund transfers allowed in a calendar month. After this limit of two is reached, which will also include transfers across the current TSP funds, any transfer must be into the G fund (government securities fund).

Reach out to Federal Employee Benefit Coordinators today to schedule your consultation and take control of your federal benefits. www.febcnow.com

Contact:
Farra Lanzer
970-541-3284
[email protected]

SOURCE Federal Employee Benefit Coordinators LLC